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Starving the Beast? Intra-Generational Conflict and Balanced Budget Rules
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
2007 (English)In: European Economic Review, Vol. 51, no 1, 145-159 p.Article in journal (Refereed) Published
Abstract [en]

A balanced budget requirement does not only prevent fiscal policy makers from smoothing tax distortions but also affects their preferred choice of government spending. The paper analyzes the conditions under which groups opposed to government spending might want to implement a balanced budget requirement in order to induce the government to spend less. It shows that relaxing a balanced budget requirement need not be associated with higher government spending.

Place, publisher, year, edition, pages
2007. Vol. 51, no 1, 145-159 p.
Keyword [en]
balanced budget, intra-generational conflict, government spending
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URN: urn:nbn:se:su:diva-19833DOI: doi: 000243846500007OAI: diva2:186357
Available from: 2007-02-15 Created: 2007-02-15 Last updated: 2011-01-11Bibliographically approved

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Niepelt, Dirk
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Institute for International Economic Studies

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ReferencesLink to record
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